Market Trends of Europe Insurance Brokerage Industry
This section covers the major market trends shaping the Europe Insurance Brokerage Market according to our research experts:
Increased Demand for Insurance Policies Driving the Insurance Brokerage Market in Europe
The expanding population of baby boomers and millennials generates growth opportunities for medical, life, and accidental insurance. Insurance brokers are focusing on insurance policies that provide maximum benefits for customers. Providing customers with security and personalized financial services has increased the demand for insurance products. Insurance firms are also investing in innovative insurance policies and services to tap their potential in insurance markets. Thus, increased awareness about the benefits of insurance policies is likely to drive the growth of the European insurance brokerage market during the forecast period.
Importance of Digital Brokers in the European Region is Expected to Surge the Market Growth
European aggregators are digital brokers, and expert advisers have evolved significantly in the past few years. As per an estimate, almost 50% of the online insurance in Europe is sold via aggregators. In many countries, aggregators have been the customer-facing side of their business. This business is mutually beneficial, as aggregators get good profit margins and a surge in M&A interest from potential acquirers. Insurers can cater to a large customer base by understanding the pros and cons of aggregators' business models.
Aggregators generally begin as specialists in any one product and broaden their reach by incorporating more verticals. Insurance products in many major European markets still account for 75% or more of aggregators' total revenue.
